This article explores the role of ethnic identity in the framework of the livestock trade in West and East Africa. It argues that ethnic identity was used as an instrument to build trust relationships that were vital to the development of pre-colonial livestock trade networks. With the onset of colonial rule, alternative marketing channels developed, none of which proved to be capable of providing reliable and low transaction cost services to both livestock producer and consumer. Nevertheless, the ethnic trade monopolies were threatened by the advent of formal colonial marketing institutions and the progressive ‘opening up’ of the market. This situation remained basically unchanged during the post-colonial era and with recent livestock and meat trade liberalisations. The evidence from Benin and Kenya demonstrates, however, that ethnic identity continues to determine the organisation of the livestock trade, albeit in a different way. The transfer of trust remains crucial to minimise transaction costs in a market that is characterised by a mobile commodity, long distances, and delayed payment in the absence of adequate financial institutions. In addition, it is argued that the specificity of the market environment equally facilitates the use of ethnicity for commercial purposes such as the delimitation of market niches.